CINEMARK HOLDINGS INC (CNK)
US17243V1026 - Common Stock
We assign a fundamental rating of 4 out of 10 to CNK. CNK was compared to 72 industry peers in the Entertainment industry. CNK has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CNK was profitable.
CNK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CNK reported negative net income in multiple years.
Of the past 5 years CNK 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, CNK is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
With an excellent Return On Equity value of 42.23%, CNK belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
CNK's Return On Invested Capital of 6.68% is fine compared to the rest of the industry. CNK outperforms 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 42.23% | ||
| ROIC | 6.68% |
ROA(3y)-3.23%
ROA(5y)-3.49%
ROE(3y)-104.01%
ROE(5y)-75.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CNK (8.20%) is better than 81.69% of its industry peers.
CNK's Profit Margin has declined in the last couple of years.
CNK has a Operating Margin of 10.15%. This is in the better half of the industry: CNK outperforms 76.06% of its industry peers.
CNK's Operating Margin has declined in the last couple of years.
CNK has a Gross Margin of 64.89%. This is in the better half of the industry: CNK outperforms 77.46% of its industry peers.
CNK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 8.2% | ||
| GM | 64.89% |
OM growth 3YN/A
OM growth 5Y-3.2%
PM growth 3YN/A
PM growth 5Y-1.8%
GM growth 3Y-0.58%
GM growth 5Y0.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNK is destroying value.
CNK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CNK has been increased compared to 5 years ago.
The debt/assets ratio for CNK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that CNK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, CNK is in line with its industry, outperforming 56.34% of the companies in the same industry.
CNK has a debt to FCF ratio of 10.72. This is a negative value and a sign of low solvency as CNK would need 10.72 years to pay back of all of its debts.
CNK's Debt to FCF ratio of 10.72 is fine compared to the rest of the industry. CNK outperforms 61.97% of its industry peers.
CNK has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.52, CNK is doing worse than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 10.72 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.89
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.98 indicates that CNK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, CNK is in line with its industry, outperforming 49.30% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that CNK may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, CNK perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 176.79%, which is quite impressive.
The Earnings Per Share has been decreasing by -8.99% on average over the past years.
CNK shows a decrease in Revenue. In the last year, the revenue decreased by -5.07%.
The Revenue has been decreasing by -0.98% on average over the past years.
EPS 1Y (TTM)176.79%
EPS 3YN/A
EPS 5Y-8.99%
EPS Q2Q%95.08%
Revenue 1Y (TTM)-5.07%
Revenue growth 3Y64.71%
Revenue growth 5Y-0.98%
Sales Q2Q%5.37%
3.2 Future
The Earnings Per Share is expected to grow by 0.65% on average over the next years.
Based on estimates for the next years, CNK will show a small growth in Revenue. The Revenue will grow by 1.80% on average per year.
EPS Next Y49.58%
EPS Next 2Y25.86%
EPS Next 3Y23.33%
EPS Next 5Y0.65%
Revenue Next Year-1.1%
Revenue Next 2Y4.76%
Revenue Next 3Y4.96%
Revenue Next 5Y1.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.81, CNK is valued on the expensive side.
CNK's Price/Earnings ratio is rather cheap when compared to the industry. CNK is cheaper than 80.28% of the companies in the same industry.
CNK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 16.55 indicates a correct valuation of CNK.
81.69% of the companies in the same industry are more expensive than CNK, based on the Price/Forward Earnings ratio.
CNK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
74.65% of the companies in the same industry are more expensive than CNK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNK indicates a rather cheap valuation: CNK is cheaper than 85.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.3 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
CNK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CNK's earnings are expected to grow with 23.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y25.86%
EPS Next 3Y23.33%
5. Dividend
5.1 Amount
CNK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CINEMARK HOLDINGS INC
NYSE:CNK (11/21/2024, 8:20:21 PM)
After market: 32.95 +0.7 (+2.17%)32.25
-0.54 (-1.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 42.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.15% | ||
| PM (TTM) | 8.2% | ||
| GM | 64.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)176.79%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y49.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.07%
Revenue growth 3Y64.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y